Pay Over Part Of Goldman Sachs S Us 2 9bil Fine Washington Told

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1MDB asset recovery task force chairman Johari Ghani says it will take years for Malaysia to repay sums owed under the 1MDB bonds arranged by Goldman Sachs. (Bernama pic)PETALING JAYA: Johari Ghani has called on the US government to remit to Putrajaya part of the US$2.9 billion in fines and penalties paid by Goldman Sachs over its role in the 1MDB saga.
In a statement to FMT, the 1MDB asset recovery task force chairman said Malaysia was entitled to receive some compensation from the sum paid by the New York-based investment bank to the US authorities.
“We appreciate the US government’s efforts in the recovery and repatriation of 1MDB funds, but they are far less than the US$4.5 billion that was stolen from Malaysians.
“We are at the short end of the stick compared to Goldman Sachs,” Johari, who is also the plantation and commodities minister, said.
He said that while the bank would be able to return to doing business as usual, Malaysia would continue to be saddled with the principal and interest payments on the bonds.
“It will take years, if not decades, for Malaysia to finally pay off 1MDB debts, which will require the use of taxpayers’ money,” he said.
Goldman Sachs had arranged the sale of 1MDB bonds worth US$6.5 billion and allowed US$4.5 billion to be siphoned away, while earning fees of US$600 million.
Johari said the settlement sum agreed on between Goldman Sachs and Muhyiddin Yassin’s administration four years ago was insufficient to cover the losses brought upon by “fraudulent activities made possible with assistance by Goldman Sachs”.
“The US$2.9 billion penalties paid by Goldman Sachs to the US government is more than the US$2.5 billion cash settlement paid to the government of Malaysia, excluding the guarantee of the return of US$1.4 billion assets linked to 1MDB bonds which is still in dispute,” said Johari.
He said Malaysia would continue to pursue the outstanding US$1.4 billion due from the bank under the settlement agreement.
On Monday, Reuters reported that the criminal case brought by the US government against Goldman Sachs had been formally brought to a close after the bank made full payment of the US$2.9 billion penalty.
Two former Goldman Sachs bankers, Tim Leissner and Roger Ng, were charged and convicted for their roles in the matter.
Ng, a Malaysian, was sentenced to 10 years in prison, while Leissner is awaiting sentencing. - FMT

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